Core Viewpoint - The Vanguard Growth ETF (VUG) is highlighted as a strong investment option for those seeking exposure to a diversified portfolio of growth stocks, with solid historical performance metrics [2][4]. Performance Summary - Over the past 5 years, the Vanguard Growth ETF has returned 12.81%, while the Vanguard S&P 500 ETF has returned 13.82% [4]. - In the past 10 years, the Vanguard Growth ETF has achieved an 18.55% return compared to 16.09% for the Vanguard S&P 500 ETF [4]. - For the past 15 years, the Vanguard Growth ETF has delivered a 15.40% return, outpacing the S&P 500's 13.77% [4]. Key Features - The Vanguard Growth ETF has a low expense ratio of 0.04%, meaning an investor pays only $0.40 annually for every $1,000 invested [6]. - The ETF includes large, established companies, notably the "Magnificent Seven," which are key players in the growth stock sector [6]. Holdings Overview - The top 10 holdings of the Vanguard Growth ETF include: - Nvidia: 12.73% - Apple: 11.88% - Microsoft: 10.63% - Alphabet Class A: 5.39% - Amazon: 4.58% - Alphabet Class C: 4.27% - Meta Platforms: 4.26% - Broadcom: 4.04% - Tesla: 3.77% - Eli Lilly: 2.72% [7]. Considerations for Investment - The ETF may not be suitable for investors concerned about market volatility, as growth stocks typically experience sharper declines during market downturns [9]. - The fund is relatively concentrated, with approximately 64% of its assets in the top 10 holdings and about 35% in the top three holdings [9]. - The ETF offers a low yield of 0.42%, which may not appeal to investors seeking dividend income compared to the S&P 500's yield of 1.1% [9].
The Smartest Growth ETF to Buy With $1,000 Right Now. (Hint: It Has Averaged Annual Gains of 18.6% Over the Past 10 Years.
The Motley Fool·2026-02-15 18:00